cost element

Definition: (ITIL Service Strategy) The middle level of
category to which costs are assigned in
budgeting and accounting. The highest-level
category is cost type. For example, a cost
type of ‘people’ could have cost elements of
payroll, staff benefits, expenses, training,
overtime etc. Cost elements can be further
broken down to give cost units. For example,
the cost element ‘expenses’ could include
cost units of hotels, transport, meals etc.